ICICI Bank credit card insurance issue come under scanner of MRTPC

ICICI Bank, the country’s largest private sector lender, and its insurance arm ICICI Lombard, had unveiled an offer to provide insurance cover to its credit card customers and compensation in case of any mishap. Following on the compliant by the a customer about being denied insurance claims the bank has come under the scanner of fair trade practices body MRTPC for imposing “unfair and unjust” conditions on the insurance cover provided to the credit card customers. The Monopolies and Restrictive Trade Practices Commission directed the DGIR to probe into the matter.

In its investigation report Director General of Investigations and Registration (DGIR), have found that certain terms and conditions concerning the insurance cover on credit cards were not conveyed to the customers at the time of issue, but only mentioned in the welcome kit booklet.

While taking note of some conditions being “unfair and unjust to the consumers”, DGIR said that customers are being denied insurance claims on the ground that cards were not used two times within 90 days from the accident day.

The report said, “ICICI Bank did not inform the customer about this pre-condition while issuing the credit card. The subscriber came to know of the same only when the card was delivered along with the welcome kit”. “This shows the bank’s casual approach,” said DGIR in its report, while recommending suitable action against the ‘unfair and unjust’ terms.

“ICICI Bank and ICICI Lombard would have misled many more people while selling the credit card and making tall claims regarding benefits, without revealing the terms and conditions regarding usage”.

Admitting a report of its investigative unit DGIR, the Monopolies and Restrictive Trade Practices Commission issued ‘notice of enquiry’ against the two companies.

The notice was issued on March 11 and both the companies have been asked to file their replies within four weeks. When ICICI Bank, was contacted in this regard, the bank denied receiving any such notice.

“ICICI Bank is yet to receive any notice and would reply appropriately when we get it,” said an ICICI spokesperson.